Thursday, August 15, 2013

All regional Centers are doomed and the only safe option for EB-5 visa seekers is opting for Direct Investment Businesses. Read the link and draw your own conclusions.

It is believed that the ongoing investigation by DHS + FBI + SEC + IRS shall result in several arrests by end of 2013.

This document at proves that the safest option for EB-5 visa seekers is to go under direct investment business category. EB-5 visa seekers should only choose those franchises that show a growth in revenues, profits and units (locations).
An EB-5 visa seeker should keep 5 primary goals in mind:

1) Get approved as quickly as possible: Direct Investment Businesses have always been the quickest approach to get EB-5 visa, and especially now, it takes about half the time to get I-526 approved for Direct Investment Businesses in comparison to Regional Centers.

2) Document the creation of 10 jobs: Regional Centers go for indirect jobs and tenant occupancy, due to which their I-526 petition denial rate is high, while I've personally had 53 clients approved for Direct Investment Businesses without any hitch whatsoever due to the simple fact that I advise my clients to start / buy businesses that meet USCIS criteria in a PROFITABLE manner.

3) ROI: EB-5 visa seekers who've used my services usually get an annual ROI of over 22%, while those who invest in regional centers / partnerships usually get 1% annual ROI. One of the major reasons low (or no ROI) is seen in partnerships and regional centers is that the promoters of partnerships and regional centers usually engage in fraud and conflict of interest.

4) Capital gains: Capital gains are rarely received by those who invest in partnerships / regional centers / third rate franchises, whereas my clients usually see pretty decent capital gains because I steer my clients into safe & usually lucrative businesses.

5) Easy exit strategy: Regional Centers and partnerships usually lock in EB-5 visa investors for 5-9 years, and charge a lot to exit the investment, while those who invest in their own Direct Investment Businesses can exit whenever they want.

EB-5 visa seekers should remember that a Papa John's or Dominos franchise may be great for Pizzerias, while Marco's Pizza may be a risky investment due to an unproven model and customer preferences. Similarly, a McDonalds or 5 Guys franchise may be great for burgers, but others may be quite risky for reasons stated above. A final example would be Subways being a great option while Quiznos not being so great. Unscrupulous franchise brokers often try to solicit EB-5 visa seekers to invest in a business with a risky business model, in order to earn commissions from the franchisor at the expense of the EB-5 visa seeker.

An easy way to find out if a franchise is a good option or not, is to ask a lender bank if they will finance that franchise. EB-5 visa seekers should ask Franchise brokers and promoters to disclose in a notarised affidavit the commissions they will receive and only work with those who offer a written guarantee of freedom from conflict of interest to their clients.

The following is a list of franchises that are usually safe for EB-5 visa seekers:

5 Guys, KFC / Taco Bell, McDonalds, Subway, Dunkin Donuts, Krispy Kreme, Cicis Pizza, Papa Johns, Pizza Hut, Napa, etc.

There are also several non-franchise options available for businesses such as movie theatres, child care, liquor stores, used car dealerships, motorcycle & scooter dealerships, pharmacies, etc.

All business brokers and EB-5 visa advisors are not alike as the unethical ones promote risky, third rate franchises and / or regional centers to EB-5 visa seekers, while we've helped our clients buy / start only reputable franchises.

We offer a full fee refund guarantee if our client's EB-5 visa petition is denied due to our fault. We also offer a guarantee of full disclosure and freedom from conflict of interest, and none of our clients has suffered operating losses or capital losses.

For further details please visit our website and join our forum on Linked: "EB-5 Visa - Direct Investment Business".

If you'd like to hire us to help you start a business to qualify for the EB-5 visa, please contact me on +1 407 535 0616.

Mohammed Shaikh, MBA, CFE, Licensed Business & RE Broker (CA & FL)
Phone: +1 407 535 0616

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